EFCC Investigates 774 Local Government Chairmen Over Spending
By Sabiu Abdullahi
The Economic and Financial Crimes Commission (EFCC) has commenced a discreet investigation into the spending and management of public funds by chairmen of Nigeria’s 774 local government areas.
The investigation, which is being conducted through the commission’s zonal directorates across the 36 states and the Federal Capital Territory, seeks to determine whether the councils have demonstrated accountability since gaining financial autonomy.
Sources within the anti-graft agency told The PUNCH that the exercise would examine how the chairmen manage their allocations, their capacity to administer public resources and the impact of financial autonomy on service delivery at the grassroots.
One of the sources said the commission wanted to assess whether the councils had improved their performance and accountability since the Supreme Court granted them financial autonomy.
“We want to see their definite impact on the economy as a result of the financial autonomy that has been granted them. We want to see whether they have the necessary managerial skills, and whether their integrity quotient is high.
“We want to see comparatively what was existing before the autonomy and what is existing now and whether there has been development. It is not about the state you mentioned alone; it is across the country. All the EFCC zonal offices are handling the investigation secretly.”
The investigation comes more than two years after the Supreme Court affirmed the financial autonomy of the 774 local government areas and barred state governors from controlling or withholding their allocations.
In May 2024, the Federal Government, through the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, approached the Supreme Court to challenge governors’ control of local government funds.
The suit also sought to stop governors from dissolving elected councils and replacing them with caretaker committees.
On July 11, 2024, a seven-member panel of the Supreme Court, led by Justice Garba Lawal, ruled in favour of local government financial autonomy. The court directed the Accountant-General of the Federation to pay allocations directly into local government accounts.
The ruling was expected to strengthen grassroots governance by allowing elected council officials to independently manage their finances and execute development projects.
However, concerns over the management of the funds led the EFCC to announce plans to monitor local government expenditure.
In October 2024, EFCC Chairman, Ola Olukoyede, said the commission would track the budget performance of local governments to ensure that allocations were used for their approved purposes.
He also pledged to work with relevant stakeholders to monitor expenditure and prosecute officials found to have violated the law.
Olukoyede said, “We are fully prepared to ensure accountability in the use of local government funds. One of the reasons that informed the decision to establish additional zonal directorates by the commission is the need to improve the commission’s presence and coverage of the country.
“We’ll work closely with stakeholders in tracking the budget performance of the councils, to ensure that funds appropriated are used for specified purposes and those who violate the law will be brought to justice.”
The EFCC’s latest investigation is expected to provide a broader assessment of how local government councils have managed public funds since the implementation of the autonomy ruling.
Efforts to obtain a response from the commission’s spokesperson, Dele Oyewale, were unsuccessful as of Monday night.